Cute compounding stories #1 : Island of Manhattan

In 1626, Peter Minuit of Netherlands bought the island of Manhattan from the Lenape people for a basket of clothes, beads and other stuff that would have been worth just $24 then. Now, you might think that the native Americans were robbed. Actually, if they were able to invest that $24 in a 8% bond, that account would be worth $26 trillion in 2012 - enough to buy entire America.

No comments:

Post a Comment